From carer to Newstart: Why Kerri-Ann wants a "leg-up"

Four years ago, Kerri-Ann's husband was diagnosed with younger onset dementia at just 58. "I managed to keep him at home and keep him well, but three months ago he developed a urinary tract infection, which led to delirium, time in hospital, respite and eventually full-time care."

After her husband moved into an aged care home, Kerri-Ann put in a call to Centrelink and was told she no longer classified as a carer, and would have to go on Newstart.

"There's no way around it," said Kerri-Ann, who went from recieving $764 a fortnight as a carer to around $500 a fortnight on Newstart.

She said she has no issue with Newstart itself: "I understand it has to be low so that we're not just getting kids leaving school and going on it." But her situation is different. Even before Michael's illness, she had been diagnosed with chronic lymphocytic leukaemia.

She said that, as a couple, having a family life was more important to both of them than her working full-time, though she was at the University Co-op Bookshop for 38 years.

"We didn't really squirrel away a lot of money. But we were lucky, we got reasonable rent. And on the two pensions, $1500 a fortnight, we could afford nearly $1000 a fortnight rent. But you can't pay $500 a week when you're only getting $250."

"This is very fortunate, because my oldest son has six children in an already small three-bedroom home, my second son has four children, my third son lives in a one-bedroom flat and my daughter has two little children, who I adore, but I don't want to live there."

She said despite looking for employment, her search was fruitless.

"Even before my husband got sick I was thinking of a job change. I was head of a customer service department, I was an executive assistant, I'm quite intelligent.

"I'd apply for jobs and get phone these calls back within hours of people receiving my resumes. Then I'd walk into the office, they'd take one look, and I could see within a second that 'Oh, this is not going to happen'.

"I've worked since I was 15. My husband worked since he was 15. Our kids have worked since they were 15. We've all paid our taxes. We've all done those things. There has to be an allowance, somewhere, for people people over 50 who through no fault of their own find themselves in this situation."

Kerri-Ann's takeaway message is this: "Although we're not carers, we still care. That's the big thing. I still shave my husband. He won't let anyone else do it. I still visit him every day. I'm still useful, but I need a leg up. It's not enough money."

Kerri-Ann is not alone. In Australia there are more than 180,000 over-55s jobless and struggling to survive on the allowance of just over $40 a day.

It is figures like this that have prompted advocacy groups to call for an increase in the Newstart allowance - which is $282 per week for a single person without children - by at least $75 a week.

Pressure is mounting on the government to increase the Newstart payment, with figures showing some recipients are skipping meals, going without heating during winter, and cutting back on showers according to the Australian Council of Social Service.

"An urgent increase of $75 a week is the absolute minimum we need after 25 years without a real increase," said Australian Council of Social Service chief executive Cassandra Goldie.

"People can't afford rent, food, energy, clothing, transport, haircuts, dental care or internet access, which severely hampers their chances of getting a job, especially as there is only one job available for every eight people looking."

The fortnightly Newstart rate is $555.70 (single, no children); for over-60s this rises to $601.10 after nine continuous months on the payment.

GDP figures released on Wednesday which show Australia's economy has fallen to its slowest rate of growth in a decade, further the strong case for increasing Newstart and investing in social housing in order to stimulate the economy, while acting on poverty and homelessness, ACOSS said this week.

"People on Newstart have to spend every cent in order to get by - they don't have the option of saving - so an increase to Newstart would immediately stimulate the economy while supporting people to get through tough times," it said in a statement.

"Political leaders must stop ignoring people on low incomes in the economic debate - acting on poverty and homelessness are some of the most effective ways we can provide the timely stimulus the economy needs."

The government has refused to consider an increase to Newstart beyond twice annual adjustments in line with inflation, despite repeated calls from ACOSS, business groups, unions and economists.

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